PROTOCOL TO THE CONVENTION BETWEEN THE SLOVAKIAN REPUBLIC AND THE UNITED MEXICAN STATES FOR THE AVOIDANCE OF DOUBLE TAXATION AND PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME
At the moment of signing of the Convention between the Slovak Republic and the United Mexican States for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income, the undersigned have agreed to the following provisions which shall form an integral part of this Convention.
(1) With respect to Article 5 (Permanent Establishment), paragraph (3):
The term "individual" includes any person that receives instructions from a company.
(2) With respect to Article 5 (Permanent Establishment), paragraph (7):
It is understood that the principle of full competence (arm's length principle) should take into account the effect to determine whether an agent is independent of the business.
(3) With respect to Article 10 (Dividends) and Article 11 (Interests):
Where the domestic law of a Contracting State requires that a payment be characterized in whole or in part as a dividend or where it limits the deductibility of such payment because of rules of capitalization or because the relevant debt instrument includes an equity interest, the Contracting State may process such payment in accordance with such law.
(4) With respect to Article 11 (Interests):
The provisions of paragraph (2) shall not apply to derived interests of credits. In such case, the interests will be taxation according to the domestic laws of the Contracting State in which it arises.
(5) With respect to Article 15 (Agreement of Mutual Procedure):
It is understood that Article 15 is applicable to a person that performs the functions of a board of directors or any other similar organ of a company having supervisory functions.
IN WITNESS WHEREOF, the undersigned, duly authorized to that effect have signed this Protocol.
DONE in duplicate at Bratislava, on the 13th day of May of the year 2006, in Spanish and English, both texts being equally authentic. In case of any dispute the English text shall prevail.
FOR THE SLOVAK REPUBLIC:
FOR THE UNITED MEXICAN STATES: